You may use one of two basic strategies when delivering negative news: direct or indirect organization. Your choice of which strategy to use will be determined by the particular situation and the receiver of the message. Understanding which strategy is appropriate in which situation will help improve the reception of your message.

In which situation would it be more effective to use the direct strategy? Check all that apply.

When the organization or receiver prefers directness

When the bad news is personally upsetting

When the bad news threatens the customer relationship

Consider the following outline of a business letter, and then answer the question.

I.

Express appreciation for customers loyalty to our product

II.

Explain circumstances when expired warranties are honored

A.	Processing errors
B.	Retail-store errors

III.

Deny request to replace product with expired warranty

IV.

Offer rebate on new model of product

V.

Pleasant close

Which approach does this outline illustrate?

Indirect

Direct

Read the scenario, and then answer the following question.

You are the director of marketing. Your department has been doing well, but the company as a whole has been losing revenue steadily each quarter. In an effort to stay in business, the company is reducing the salaries of all employees by 15 percent. You need to inform your employees, who are not expecting such a significant salary decrease.

Which outline would be most appropriate in this situation?

I.

Inform employees of 15 percent pay cut and the facts of the companys financial situation

II.

Provide alternatives to strategy

A.	Unemployment
B.	Bankruptcy

III.

Close with goodwill

I.

State the facts of the companys financial situation

II.

Explain

A.	The reasons why the company needs to take drastic action
B.	The benefits of the companys strategy

III.

Inform the employees they will receive a 15 percent pay cut

IV.

Close with a forward-looking statement

I.

Inform the employees they will receive a 15 percent pay cut

II.

State the facts of the companys financial situation

III.

Explain

A.	The reasons the company needs to take drastic action
B.	The benefits of the companys strategy

IV.

Close with a forward-looking statement